How to Save Tax on ₹10 Lakh / ₹15 Lakh / ₹20 Lakh Salary
Tax on ₹10 Lakh Salary#
Tax Calculation#
| Component | Amount |
|---|---|
| Gross Salary | ₹10,00,000 |
| Standard Deduction | ₹75,000 |
| Taxable Income | ₹9,25,000 |
| Income Slab | Tax |
|---|---|
| Up to ₹7,00,000 | Nil (Rebate) |
| ₹7-10L: ₹3L @ 10% | ₹30,000 |
| Total Tax | ₹30,000 |
| Cess | ₹1,200 |
| Total | ₹31,200 |
Tax Saving Tips#
- NPS Contribution: ₹50,000 (80CCD)
- Health Insurance: ₹25,000 (80D)
- Save up to ₹31,200
Tax on ₹15 Lakh Salary#
Tax Calculation#
| Component | Amount |
|---|---|
| Gross Salary | ₹15,00,000 |
| Standard Deduction | ₹75,000 |
| Taxable Income | ₹14,25,000 |
| Income Slab | Tax |
|---|---|
| Up to ₹3L | Nil |
| 3-7L: ₹4L @ 5% | ₹20,000 |
| 7-10L: ₹3L @ 10% | ₹30,000 |
| 10-12L: ₹2L @ 15% | ₹30,000 |
| 12-14.25L: ₹2.25L @ 20% | ₹45,000 |
| Total Tax | ₹1,25,000 |
| Cess | ₹5,000 |
| Total | ₹1,30,000 |
Tax Saving Tips#
- 80C: ₹1,50,000
- NPS: ₹50,000
- 80D: ₹25,000
- Home Loan: ₹2,00,000
- Potential Savings: ₹1,30,000
Tax on ₹20 Lakh Salary#
Tax Calculation#
| Component | Amount |
|---|---|
| Gross Salary | ₹20,00,000 |
| Standard Deduction | ₹75,000 |
| Taxable Income | ₹19,25,000 |
| Income Slab | Tax |
|---|---|
| Up to ₹3L | Nil |
| 3-7L: ₹4L @ 5% | ₹20,000 |
| 7-10L: ₹3L @ 10% | ₹30,000 |
| 10-12L: ₹2L @ 15% | ₹30,000 |
| 12-15L: ₹3L @ 20% | ₹60,000 |
| 15-19.25L: ₹4.25L @ 30% | ₹1,27,500 |
| Total Tax | ₹2,67,500 |
| Cess | ₹10,700 |
| Surcharge (10%) | ₹26,750 |
| Total | ₹3,04,950 |
Tax Saving Tips#
- Max 80C: ₹1,50,000
- NPS Max: ₹50,000
- 80D: ₹25,000
- Home Loan: ₹2,00,000
- HRA: ₹2,00,000
- Potential Savings: ₹1,00,000+
Key Deductions Summary#
| Section | Max Deduction |
|---|---|
| 80C | ₹1,50,000 |
| 80CCD(1B) | ₹50,000 |
| 80D | ₹25,000 |
| 80E | Unlimited |
| 24 | ₹2,00,000 |
| 80EE | ₹50,000 |
| Standard Deduction | ₹75,000 |
Conclusion#
Strategic planning minimizes tax significantly.